LONDON, May 16, 2024
/PRNewswire/ -- New research released today reveals that
over three quarters of the UK public (76%) believe that, more than
ever before, the law needs to change to give businesses a legal
responsibility to prioritise people and the planet alongside making
a profit.
UK law currently requires firms to operate under a legal regime
of shareholder primacy, meaning company directors too often put
profit ahead of society and the environment.
The research, which looks at UK opinion on business
responsibility, was conducted by B Lab UK ahead of this year's
Better Business Day (Thursday 16th May).
Better Business Day will see a broad coalition of businesses
call to enact the Better Business Act — a proposed change to
Section 172 of the Companies Act that would empower company
directors to align the interests of shareholders with their
employees, customers, local communities and the environment.
Support for the change spans political preferences with voters
across the party divide strongly giving their backing; 85% of
Labour supporters, 70% of Conservative supporters, and 89% of both
Liberal Democrat and Green Party supporters said they were in
favour of the proposed amendment to the law.
When respondents were asked about their biggest single motivator
for backing the change, looking after people was at the
forefront.
Over a quarter (28%) polled believed the most important reason
was to protect employees, with recent developments such as the Post
Office scandal highlighting a need for change.
This was followed by the need to support the public during the
ongoing cost of living crisis (26%) and the fact that businesses
should have a legal responsibility to protect the environment
(25%).
Around the UK, Wales is the
biggest supporter of the proposed amendment, with 86% of people
polled there saying the law must change.
The research showed that increasingly the public are looking to
businesses to act as a force for good and will prioritise those
that do. Almost half of respondents (47%) said that they will only
work for companies that show themselves to have a responsibility
towards wider stakeholders including their employees, customers,
local communities and the environment.
45% also said they would only invest in, and purchase goods
from, companies who act in a responsible way, indicating that
businesses who prioritise people and the planet have a competitive
advantage.
Mary Portas, Chair of the
Better Business Act, and founder of Portas agency, said:
"The data is clear. And so is the cultural mood. The British
public are crying out for businesses to make a change and make it
their legal right and responsibility to look after people and the
planet.
We see this demand across the board. From all parts of the
UK. All age ranges. All political persuasions. As we head into the
election, it's a challenge the next government cannot
ignore.
Thousands of businesses have already prioritised responsible
decision-making. It's only fair that the government now
supports every company – big and small – in their journey towards
becoming a better business."
Chris Turner, Campaign
Director of the Better Business Act and Executive Director of B Lab
UK, said:
"It's been three years since we launched the Better Business
Act campaign. In that time, we've seen a growing majority of the UK
public demand more from the companies they engage with, while
leaders of these organisations also recognise that we need to
change 'business as usual'. Over 2,500 UK companies from all
sectors and of all sizes are now backing the Better Business Act,
demonstrating the urgency for the next Government to take action
and empower all business leaders to prioritise people and the
planet alongside profit.
During a time when people are battling a cost-of-living
crisis, global temperatures are rising and inequality is reaching
new heights, updating Section 172 of the Companies Act would ensure
that business becomes part of the solution to the social,
environmental and economic challenges we face."
During Better Business Day, B Lab UK will be releasing a new
video in support of amendments to Section 172 of the Companies Act.
The film will show UK business leaders sharing elevator pitches as
to why they support the campaign.
These contributors are Mary
Portas (Co-Chair of Better Business Act and Founder of
Portas Agency), Amy Clarke (Chief
Impact Office of Tribe Impact Capital), Chris Turner (Executive Director of B Lab UK and
Campaign Director of Better Business Act), Dr Ateh Jewel
(Entrepreneur), Safia Minney (Author
and Entrepreneur), and Luke Boase
(Founder of Lucky Saint).
To find out more information visit
https://betterbusinessact.org/
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